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Prospect Acquisition to buy Kennedy-Wilson

Prospect Acquisition to buy Kennedy-Wilson, creating firm to focus on distressed real estate

  • On 4:44 pm EDT, Wednesday September 9, 2009

NAPLES, Fla. (AP) -- Special purpose acqusition company Prospect Acquisition Corp. is acquiring real estate investment company Kennedy-Wilson Inc., creating an entity that will focus on distressed real estate acquisitions and growing its auction and property-management business.

The two companies said Wednesday that Prospect will issue 26 million shares of its common stock to the current holders of common and preferred stock of Kennedy-Wilson. It will also issue 4 million restricted shares of Prospect common stock to Kennedy-Wilson senior management, which will vest over a three-year period.

The deal values Kennedy-Wilson at about $293.7 million, based on Prospect's Tuesday closing price of $9.79.

The combined entity will be a wholly owned subsidiary of Prospect called Kennedy-Wilson Holdings Inc.

The deal is expected to close by Nov. 14.

Prospect shares closed Wednesday trading up 3 cents at $9.82 on the New York Stock Exchange. Kennedy-Wilson shares, which trade on the Over-the-Counter market, added $4.50, or 13.4 percent, to $38.

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